Evanston's unemployment rate jumped back to 5.4% in August, erasing a one-month dip and matching the two-year high the city hit in June.

The local figures, published Thursday, Sept. 24, by Evanston Now citing the Illinois Department of Employment Security (IDES), show the jobless rate climbed half a percentage point from July's 4.9%. That July drop had been the only relief since June's 5.4% reading, which Evanston Now reported in June was the city's highest since August 2024.

The trend puts Evanston above both the state and national averages. Illinois' unemployment rate fell for a second straight month in August, dropping 0.2 percentage points to 4.7%, according to an IDES release dated Sept. 17. The national rate held at 4.1%.

The Chicago metro area tracked closer to Evanston, rising to 5.6% in August after dipping to 5.2% in July, according to Evanston Now.

Illinois Deputy Governor Andy Manar, in a statement accompanying the IDES release, attributed part of the state's labor market uncertainty to federal trade policies. Manar said inconsistent trade policy from Washington is making it harder for businesses to plan and invest. Illinois Department of Commerce and Economic Opportunity Director Kristin Richards echoed that assessment, pointing to supply chain disruptions tied to federal policy as a headwind for key sectors.

Despite the statewide rate declining, Illinois ranked 40th among the 50 states and the District of Columbia for joblessness in August, tied with Delaware, Kentucky and New Mexico.

South Dakota posted the nation's lowest rate at 2%.

Evanston's August number also stands out against the city's own recent history. The city's average annual unemployment rate was 3.7% in 2023 and 3.9% in 2022, according to a City of Evanston economic development memo. That average rose to 5.2% in 2024.

Statewide, total nonfarm payrolls dipped by 4,400 jobs in August to 6,175,600, according to IDES. Education and health services lost 6,100 positions, while financial activities shed 1,700. Leisure and hospitality added 1,800 jobs, and construction gained 1,500.

The number of unemployed people in Illinois stood at 306,800 in August, down 2.8% from July but up 8.1% from August 2025, according to IDES.